Augmented reality advertising in an e-commerce model with competition

We consider an e-commerce model with two competing retailers (retailers A and B) and one intermediary, and study the decisions of retailer A on augmented reality (AR) advertising given that the other retailer (retailer B) has adopted AR advertising. We investigate both retailers’ optimal AR advertising level under two channel modes: the reseller mode and the marketplace mode. We find that, under both channel modes, retailer A will follow...